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10.f. Contract with Brian Nelson Inspecton Services Inc for Electrical Inspection Services{ SCANDIA Staff Report Date of Meeting: April 18, 2017 To: City Council From: Neil Soltis, Administrator Re: Contact with Brian Nelson Inspection Services Inc. for electrical inspections Background: Electrical Inspector Dave Kichler has announced his retirement effective July 1, 2017 and has recommended that Inspector Brian Nelson be designated as his replacement. Both Kichler and Nelson attended the March 1, 2017 Council work session to respond to questions. Currently Nelson is working as a State Electrical Inspector serving 7 cities and has filled in for Kichler on occasion in performing inspection in Scandia. Nelson stated that he is taking on the inspections for Hugo, Centerville, and other municipalities covered by Kichler, and would like to negotiate a similar contract with Scandia. At the meeting the Council approved a motion to enter into an Electrical Inspection Services Contract with Brian Nelson based on the existing contract by a 5-0 vote. Issue: Should the City contract with Brian Nelson Inspection Services Inc. to perform electrical inspection services? Proposal Details: City Attorney Andy Pratt reviewed and updated the previous contract with Kichler. The contract, which contains the same terms as the Kichler contract. The contract establishes Nelson's role as an independent contractor responsible for all certifications and insurance and includes a provision for either party to terminate the agreement, with or without cause, upon 30 days written notice. Fiscal Impact: The contract calls for an 80/20 split of electrical permit fees collected. Payments to Kichler have been $4,266 in 2013, $4,736 in 2014, $4,285 in 2015, and $7,061 in 2016. The higher payment last year was attributed to Forest Lake Holdsco solar project. Options: 1. Approve the contract as presented 2. Modify the contract 3. Defer action pending additional information 4. Take no action and seek other options for the work to be performed. Recommendation: Option 1 City Of Scandia Electrical Inspection Services Agreement This Electrical Inspection Services Agreement (the "Contract") is made and entered into between the City Of Scandia, hereinafter identified as "City" and Brian Nelson Inspection Services, Inc., hereinafter identified as "Contractor". WHEREAS, the City requires electrical inspection services to be provided for electrical permits issued in the City; and WHEREAS, the Contractor desires to and is capable of providing the necessary services according to the terms and conditions stated herein. TERM. The term of this Contract shall begin July 1, 2017. 2. CONTRACTOR'S OBLIGATIONS The Contractor shall provide the following services: a. Provide qualified personnel to perform electrical inspections within two working days of notification by the electrical installer. b. Enforce the Minnesota Electrical Act and Rules (Minnesota Statutes, Sections 326B.31 through 3268.399) as adopted and amended by the City and the current National Electrical Code. c. Submit a report of completed inspections and invoices for completed electrical inspections with the completed permits each month. d. Cooperate with the City Building Official to resolve non -complying or incomplete electrical installations when the installers fail to comply with required standards. e. Notify the electrical utility for connection or re -connection of all electrical services installed, replaced or repaired for which an electrical permit is required. Contractors may call in for hook-ups on residential installations. 3. CITY'S OBLIGATIONS The City shall: a. Receive and process electrical permits and fees in accordance to its fee schedule. b. Assign a permit number. c. Forward a copy of the permit to the Contractor. d. Receive and process orders for payments and fees collected for fee shortages and extra or special inspections. e. Adopt the most recent version of the Minnesota Electrical Act. f. Adopt Minnesota Rules related to the Minnesota Electrical Act. 4. PAYMENT a. Compensation. The City shall pay the Contractor 80% of the permit fees collected for completed inspections. b. Invoices. The Contractor shall submit an invoice and request for payment on an invoice form acceptable to the City. See form attached hereto as Exhibit A. c. Time of Payment. The City shall make payments to the Contractor within thirty days from the date of which the invoice is received. If the invoice is incorrect, or otherwise improper, the City shall notify the Contractor within ten days of receiving the incorrect invoice. Upon receiving the corrected invoice from the Contractor, the City will make payment within thirty days. d. Payment for Unauthorized Claims. The City may refuse to pay any claim which is not specifically authorized by this Contract. Payment of the claim shall not preclude the City from questioning the propriety of the claim and the City does not waive any claims under this Contract if any claim is paid. 5. COMPLIANCE WITH LAWS AND STANDARDS a. General. The Contractor shall abide by all federal, state and local laws, statutes, ordinances, rules and regulations now in effect or hereafter adopted pertaining to this Contract. b. Licenses. The Contractor shall procure, at its own expense, all licenses or other certifications required for the provision of services contemplated by this Contract and provide proof to the City of such licenses. The Contractor shall inform the City of any changes in the above -stated laws, standards, requirements, rules, etc., within five (5) days of occurrence. c. Minnesota Law to Govern. This Contract shall be governed and construed in accordance with the substantive and procedural laws of the State of Minnesota, without giving effect to the principles of conflict of laws. All proceedings related to this Contract shall be venued in the State of Minnesota, at the District Court in Washington County. 6. INDEPENDENT CONTRACTOR STATUS. The Contractor is an independent contractor and nothing herein contained shall be construed as to create the relationship of employer and employee between the City and the Contractor. The Contractor shall at all times be free to exercise initiative, judgment and discretion as to how to best perform services. The Contractor acknowledges and agrees that the Contractor is not entitled to receive any benefits received by City employees and is not eligible for worker's or unemployment compensation benefits. The Contractor also acknowledges and agrees that no withholding or deduction for State or Federal income taxes, FICA, FUTA or otherwise, will be made from payments due to the Contractor and that it is the Contractor's sole obligation to comply with the applicable provisions of all Federal and State tax laws. 7. INDEMNIFICATION. The Contractor shall indemnify, hold harmless and defend the City, its officers and employees against any and all liabilities, losses, costs, damages, expenses, claims and actions, including attorney's fees which the City, its officers or employees may hereafter sustain, incur or be required to pay arising out of or by reason of any negligent or willful act or failure to adequately perform the Contractor's obligations pursuant to this Contract. 8. INSURANCE. a. Professional Liability Insurance. The Contractor must provide and maintain in force professional liability insurance in a form approved by the City with limits of at least $500,000 per occurrence and $1,000,000 aggregate for each person performing inspections under this Contract and naming the City as an additional insured. b. Automobile Liability. The Contractor must provide a certificate of automobile insurance with liability limits of not less than $500,000 per occurrence for each person performing inspections under this Contract. c. Worker's Compensation. If applicable, the Contractor shall procure and maintain a policy that at least meets the statutory minimum. d. Certificates. Upon execution of this Contract, the Contractor shall file copies of insurance certificates, as described in a. and b. above, with the City. e. Failure to Provide Proof of Insurance. The City may withhold payments or immediately terminate this Contract for failure of the Contractor to furnish proof of insurance coverage or to comply with the insurance requirements as stated above. Non -Waiver. Nothing in this Contract shall constitute a waiver by the City of any statutory limits or exceptions to liability. 9. SUBCONTRACTING. The Contractor shall not enter into any subcontract for the performance of the services contemplated under this Contract nor assign any interest in this Contract without prior written consent of the City and subject to such conditions and provisions as are deemed necessary. The Contractor may have another inspector fill in for it from time to time or in the case of sickness or while on vacation and shall notify the City in such event. 10. TERMINATION. This Contract may be terminated with or without cause by either party upon thirty (30) days written notice. Notice shall be given as follows: To the City: City of Scandia Attention: Neil Soltis, Administrator 14727 209th St N. Scandia, MN 55073 Phone: 651.433.2274 To the Contractor: Brian Nelson Inspection Services, Inc. 19721 5th Street NE Cedar, MN 55011 Phone: 763.434.4853 11. CONTRACT RIGHTS/REMEDIES. a. Rights Cumulative. All remedies available to either party under the terms of this Contract or by law are cumulative and may be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed an election of such remedy to the exclusion of other remedies. b. Waiver. Waiver for any default shall not be deemed to be a waiver of any subsequent default. Waiver of breach of any provision of this Contract shall not be construed to be a modification of the terms of this Contract, unless stated to be such in writing and signed by authorized representatives of the City and the Contractor. The PARTIES hereto have executed this Contract as of the year and date listed below. Dated City of Scandia By: Christine Maefsky, Mayor By: Neil Soltis, Clerk/Administrator Contractor: Brian Nelson Inspection Services, Inc.